Wells Fargo Securities Reiterates Outperform Rating on Apple Following Acquisition of PrimeSense

In a report published Monday, Wells Fargo Securities analyst Maynard Um reiterated an Outperform rating on

. In the report, Wells Fargo Securities noted, “All Things D indicates that Apple has confirmed its acquisition of PrimeSense and estimates a price of around $360MM. PrimeSense develops 3D motion sensors technology utilized across entertainment, retail and robotics. It's most visible application was in early versions of Microsoft's Xbox Kinect (MSFT now uses its own technology that it previously acquired). We view this acquisition favorably as we've long held the belief that gesture and voice will be the new interfaces to television as alternatives to the remote control and Apple was lagging behind its competitors Samsung and Microsoft in this respect. We believe the announcement may be an indication that Apple is in early preparation for a television offering or material functional improvements to its current Apple TV offering. However, we continue to expect that a television, if indeed the route Apple chooses, is unlikely in 2014.” Apple closed on Friday at $519.80.